SAN DIEGO, Oct 2 (Reuters) - New York Federal Reserve Bank President John Williams said on Wednesday that while the U.S. economy looks to be in a “favorable place” when viewed through the rearview mirror, the outlook through the windshield ahead is “mixed.”
Trade uncertainty, geopolitical risks and other factors are creating “crosscurrents” that need to be navigated as the Fed tries to keep the U.S. economy in “roughly” the same place it is currently, Williams said at an economics roundtable at the University of California, San Diego. The inverted yield curve shows negative investor sentiment about the outlook for U.S. economic growth, he said, a signal he said he “takes seriously.”
The Fed last month cut its overnight policy rate by a quarter of a percentage point for the second time this year, to target a range between 1.75% and 2.0%.
Reporting by Ann Saphir, Editing by Franklin Paul